The Legal Effects of the Defence Raised by the Debtor against the Factor, that the Contract for Sale Is Invalid Cover Image
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Възражението на длъжника срещу фактора за недействителност на договора за доставка на стоки или изпълнение на услуги и неговите правни последици
The Legal Effects of the Defence Raised by the Debtor against the Factor, that the Contract for Sale Is Invalid

Author(s): Emilia P. Dimitrova
Subject(s): Law, Constitution, Jurisprudence, Commercial Law
Published by: Софийски университет »Св. Климент Охридски«

Summary/Abstract: The factoring includes two contracts: a contract for sale of goods or for supply of services between the supplier and their customers (debtors), on the one hand, and a factoring contract between the supplier and the factor, on the other hand. This article analyses the invalidation of the contract for sale of goods or for supply of services and its effect on the factor. The most important legal consequence from the invalidation of the contract for sale of goods or for supply of services is the debtor’s refusal to pay. It is concluded that the debtor may set up against the factor all defences that the contract concluded between the debtor and supplier is invalid. The article examines the defences of the factor in case of non-payment by the debtor and discusses how the factor shall recover damages from the invalidation of the contract for sale of goods or for supply of services. These issues are addressed in view of Bulgarian legislation and the UNIDROIT Convention on International Factoring.

  • Issue Year: 2013
  • Issue No: 4
  • Page Range: 29-40
  • Page Count: 12
  • Language: Bulgarian